Hong Kong posts robust GDP growth

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Kong’s economy grew at its fastest annual clip in six years in the first quarter, supported by a recovery in global trade, stronger economic activity in China and rising asset prices.

The strong start t o 2017 from rebounding exports and stronger domestic spending will help the city navigate risks from rising trade protectionism and higher interest rates as it begins to transition to a new government in July.

Hong Kong’s $270 billion economy expanded at a robust rate of 4.3% in the March quarter from a year earlier. It was the fastest pace of expansion since the second quarter of 2011 and comfortably beat forecasts in a Reuters poll of 3.4%.

On a seasonally adjusted basis, the economy grew 0.7% in the March quarter, slower than the previous quarter’s growth of 1.2%.

The government upwardly revised growth in the fourth quarter of 2016 to 3.2%.

“This is likely to be as good as it will get,” Chang Liu, an economist at Capital Economics wrote in a note. “While the external environment should remain buoyant in the months ahead, we don’t think the rapid growth in capital spending will last.”